The tasselled wobbegong shark inhabits shallow coral reefs in Australia, New Guinea and Indonesia. It has a broad and flattened body and head with a big mouth and camouflages itself by day with its fringes and color pattern. Occasionally it ambushes nearby fishes, sometimes waving its tail to mimic the appearance of a small fish to lure its prey in. At night it goes hunting.

Divers in coral reefs often come near the camouflaged wobbegongs unawares. Sometimes they get bitten – this may result from accidentally disturbing the shark or being mistaken for prey.

Tasselled wobbegong sharks are known to adapting well to captivity and sometimes live in aquariums.